Remove Finance Remove Institutional Investors Remove LP Remove Seed Stage
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The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” ” The new narrative is “will my seed funds be able to fund the prorata of their winners?” Why is this? and hasn’t abated.

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

Prorata investments rights given investors the right to invest in your future fund-raising rounds and maintain their ownership % in your company as your company grows and raises more capital. New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.